Smith Paints allocates overhead based on machine hours. Selected data for the most recent year follow.

Estimated manufacturing overhead cost $250,000

Actual manufacturing overhead cost $230,000

Estimated machine hours 20,000

Actual machine hours 21,000

The estimates were made as of the beginning of the year, while the actual results were for the entire year.

At Smith Paints the predetermined manufacturing overhead rate per machine hour is closest to

Question 46 options:

$11.90

$10.95

$12.50

$11.50